Trading vs Value Investing During a Recession

Trading vs Value Investing During a Recession

stock market

During a prolonged market downturn, many good companies get beaten down in price due to market sentiments. A few months back, some good companies such Capitaland, SIA Engineering, Hyflux, ARA, etc were at low prices. I was very tempted to buy some of these companies for a short-term trade up. Even though the companies might not be undervalued per se or fit exactly into the value investing criteria of low debt, high ROE, etc, making quick bucks out of these companies seemed very tempting.

During a market crash, is it better to buy blue-chip companies for a short-term trade or wait for fundamentally strong companies to become undervalued for a long-term buy? An example of this would be, is it more prudent to employ cash to buy Capitaland for trading or use …

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